Editor's note: This story was originally featured in the January issue of DS News, out now. The Florida Fourth District Court of Appeals (Fourth DCA) recently affirmed the extension of safe harbor protection provided to homeowner’s associations under §720.3085(2)(c), Florida Statute, to ...
Read More »Proposed Arizona Bill Addresses HOA Foreclosure Timelines
A new bill proposed in the Arizona Senate this week could speed up the timeline for when homeowners associations (HOA) could foreclose on homeowners who become delinquent in their HOA payments. Senate Bill 1080, proposed by Sen. John Kavanagh (R-Fountain ...
Read More »Homeowners Associations: The Robin Hood of Foreclosure
In some states, certain types of foreclosure can eradicate first Deed of Trust, leaving lenders and borrows out to dry. In one state, these foreclosures are becoming increasingly popular, and the courts can’t seem to take a side.
Read More »Federal Court Rules HOAs Cannot Use ‘Super-Priority Lien’ to Foreclose on GSE-Backed Loans
Judge Gloria Navarro ruled in the case of Skylights LLC v. Byron that federal law prohibited a state-law HOA foreclosure from extinguishing a first deed of trust that is guaranteed by one of the government-sponsored enterprises.
Read More »Nevada Senate Passes Bill to Amend ‘Super-Priority Lien’ Law
Banks and lenders that have suffered huge losses in some cases when HOAs have extinguished mortgages where the delinquent HOA dues amounted to a fraction of the balance on the mortgage claim that the super-priority lien law gives the HOAs too much power.
Read More »FHFA Reiterates Vow to Protect GSE-Backed Loans From ‘Super-Priority’ Liens
Several states currently allow HOAs to enforce the super-priority lien status and foreclose on a home non-judicially when the owner falls behind on his or her HOA dues—thus extinguishing the note held by the mortgagee, which in many cases suffers losses totaling hundreds of thousands of dollars as a result.
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